[For Information Purpose Only]
May 27, 2019
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for April 2019
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The overall Portfolio NOI1,2 for the June 2019 fiscal period (January to April) increased by 3.6%
compared to the same period in 2018. The following are the details by segment.

2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio3 performance for the month of April 2019 has shown increases in
Occupancy of 0.9pt, ADR of 6.0% and RevPAR of 7.0% year-on-year. April’s increase in
Occupancy and ADR year-on-year was led by hotels with strong leisure demand such as Hotel
Epinard Nasu and Beppu Kamenoi Hotel that performed well during the 10-day Golden Week
holidays commenced on April 27.
The April 2019 NOI for the domestic hotel portfolio increased by 10.1% (year-on-year) and thecumulative NOI for the June 2019 fiscal period (January to April) increased by 0.8% comparedto the same period last year.
Table below shows the KPIs for each area of the hotel portfolio3.
7

Occupancy Rate

ADR (JPY)

8

RevPAR (JPY)9Tokyo 23 Wards

95.1%

11,14010,599Greater Tokyo (ex. Tokyo 23 Wards)

92.7%

14,80813,730

Chubu

86.4%

10,523

9,096

Kansai

92.5%

11,476

10,614This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1

Kyushu

89.9%

10,5909,519

Hokkaido

70.5%

9,372

6,609

Other domestic

86.7%

18,69016,196

Total

90.4%

12,04010,886(2) Cayman Hotels
The Cayman hotels (the Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine
Suites Resort) achieved growth rates for the month of April in occupancy, ADR and RevPAR of
0.3pt, 15.2% and 15.5% year-on-year respectively. NOI4 increased by 1.8% (year-on-year) forthe month and this is the last month that NOI will be reported on a three month delay which will
be eliminated by the structure change of the investment in the Cayman hotels16.

3. Residential Assets Overview
The residential portfolio5 occupancy rate as of the end of April 2019 was 96.0% (+0.3pt
year-on-year). The rent increase program continues to show strong results as average rent
per tsubo as of the end of April 2019 increased by 1.9% year-on-year.
NOI6 for the residential portfolio increased by 2.4% in April 2019 (year-on-year), and increasedby 3.1% for the June 2019 fiscal period (January to April) compared to the same period in 2018.
Rents, compared with immediately preceding leases, increased by 1.9% across all new leases,
1.9% across all renewal leases, and 1.9% across all combined new and renewal leases for theJune 2019 fiscal period. INV achieved a rent increase on 41.7% of contract renewals (June2019 fiscal period). The retention rate for the existing tenants continues to be high at 73.9%
for the June 2019 fiscal period.

This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2

4. Performance(1) 55 Domestic Hotel Properties

3

90.4%

Same month of theprevious year
(B)
89.5%

12,040April 2019
(A)
7

Occupancy Rate
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue
10(JPY million)# of Properties

7

ADR (JPY)

89

RevPAR (JPY)
Gross Revenue
10(JPY million)# of Properties(2) Cayman Hotels+1.0%

11,362

+679

+6.0%

10,886

10,171

+714

+7.0%

4,822

4,612

+209

+4.5%

55

55

―

―

7

ADR (USD)

8
9

RevPAR (USD)
Gross Revenue(USD)# of Properties

7

Occupancy Rate
ADR (USD)

8
9

RevPAR (USD)
Gross Revenue(USD)# of Properties

Same period of the12previous year
(D)

Difference(C－D)

YoY Change

88.2%+0.4pt+0.5%

10,482

10,222

+260

+2.5%

9,291

9,017

+274

+3.0%

17,058

16,582

+476

+2.9%

55

55

―

―

90.2%

Same month of theprevious year
(B)
89.9%

430

4

April 2019(A)
Occupancy RateYoY Change+0.9ptFiscal period
ending June 201911
Cumulative
(C)
88.6%

Occupancy Rate

Difference(A－B)

Difference(A－B)

YoY Change+0.3pt

+0.3%

373

+57

+15.2%

388

336

+52

+15.5%

9,688,957

8,723,902+965,055+11.1%

2

2――

Fiscal period
ending June 201911
Cumulative
(C)
91.3%

Same period of the12previous year
(D)

Difference(C－D)

YoY Change

91.3%-0.1pt

-0.1%

468

398

+70

+17.5%

427

364

+63

+17.4%

40,810,082

37,262,336+3,547,746

+9.5%

2

2

―

―

This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3(3) 64 Residential Properties

5

Same month of theprevious year
(B)

April 2019(A)

Difference(A－B)

YoY Change

Occupancy Rate

96.0%

95.8%

+0.3pt+0.3%

Rent per Tsubo
(JPY)

9,950

9,767

+183

+1.9%

# of Properties

64

64

―

―

Fiscal period
ending June 201911
Cumulative(C)

Same period of the12previous year
(D)

96.1%

95.5%

+0.6pt

+0.6%

9,870

9,715

+155

+1.6%

64

64

―

―

13

Occupancy Rate
Rent per Tsubo(JPY)

Difference(C－D)

YoY Change

13# of Properties

5. Portfolio NOI2018 Simulated NOI

Ratio(JPY million)

Tokyo 23 Wards
Greater Tokyo(ex. Tokyo 23 Wards)

Greater Tokyo -

14

1,2

NOI

(JPY million)

April

April

YoY

2019

2018

Change

6,388

23.5%

718

707

+1.6%

3,568

13.1%

234

199

+17.9%

9,957

36.6%

953

906

+5.2%

Domestic

Subtotal

Hotel

Chubu

1,456

5.4%

157

141

+11.0%

Kansai

2,227

8.2%

261

277

-5.7%

Kyushu

1,649

6.1%

138

117

+17.7%

Hokkaido

1,479

5.4%

70

23

+202.8%Other domestic

2,181

8.0%

173

127

+36.0%

Domestic Hotel – Subtotal

18,951

69.7%

1,753

1,593

+10.1%

Residential

5,098

18.7%

437

427

+2.4%

Commercial

368

1.4%

30

30

-0.3%

Domestic Asset- Subtotal

24,417

89.8%

2,221

2,050

+8.3%

Overseas

2,782

10.2%

412

404

+1.8%

Total

27,200100.0%

2,633

2,455

+7.2%

This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

42018 Simulated NOI

14

1,2

NOI

(JPY million)

Fiscal period Same period
Ratio(JPY million)

ending Juneof the2019previous
11

Cumulative
Tokyo 23 Wards
Greater Tokyo(ex. Tokyo 23 Wards)

Greater Tokyo -

year

YoY
Change

12

6,388

23.5%

2,137

2,092

+2.1%

3,568

13.1%

1,143

1,127

+1.5%

9,957

36.6%

3,280

3,219

+1.9%

Domestic

Subtotal

Hotel

Chubu

1,456

5.4%

361

414

-12.8%

Kansai

2,227

8.2%

690

819

-15.7%

Kyushu

1,649

6.1%

542

515

+5.4%

Hokkaido

1,479

5.4%

382

301

+26.9%

Other domestic

2,181

8.0%

444

386

+15.0%

Domestic Hotel – Subtotal

18,951

69.7%

5,702

5,657

+0.8%

Residential

5,098

18.7%

1,729

1,677

+3.1%

Commercial

368

1.4%

122

122

-0.4%

Domestic Asset- Subtotal

24,417

89.8%

7,555

7,458

+1.3%

Overseas

2,782

10.2%

1,068

866

+23.3%

Total

27,200100.0%

8,623

8,325

+3.6%

(Note 1) Based on all properties held as of the beginning of January 2019, listed in “5. Portfolio NOI” excluding 9 hotels with
fixed-rent lease agreements. Please refer to (Note 3) below for the details of 9 hotels with fixed-rent lease agreements.
NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo
Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 to September 30
and from October 1 to March 31 every year, and INV will receive the dividend within three months from the end of eachsemi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on a monthly basis, theamount of dividend INV receives from the TMK for each month is a simulated figure, which is calculated by deducting (i)simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing the budget of the
TMK for the fiscal period that includes the relevant month by the number of months in such fiscal period) from (ii) NOI
based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which is three months before the target
month for this performance disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in the TMK(49.0%). Moreover, NOI for the Cayman hotels includes a simulated amount of dividend income from the Seven Mile
Resort Holdings Ltd. (the “Cayman SPC”) that owns the Westin Grand Cayman Seven Mile Beach Resort & Spa andSunshine Suites Resort as underlying assets. The fiscal periods of the Cayman SPC are semi-annual periods from April
1 to September 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months fromthe end of each semi-annual fiscal period of the Cayman SPC. Since INV does not receive a dividend from the Cayman
SPC on a monthly basis, the amount of dividend INV receives from the Cayman SPC for each month is a simulated figure,which is calculated by deducting (i) simulated expenses such as operating expense of the Cayman SPC and the interestof debt (calculated dividing the budget of the Cayman SPC for the fiscal period that includes the relevant month by the
number of months in such fiscal period) from (ii) NOI based on the performance of the underlying assets in the monthwhich is three months before the target month for this performance disclosure. The TK dividend amount is calculated at
the exchange rate of US$1 to ¥110, which is the exchange rate fixed by the acquisition of puts and selling calls, covering
approximately 85% of expected cash flow through December 31, 2020. Furthermore, NOI is provisional figure andsubject to change when it is determined at financial closing; hereinafter the same.
(Note 2) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners;
hereinafter the same.
(Note 3) Based on 55 hotel properties; of the 64 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the beginning of January 2019, 9 hotels with fixed-rentlease agreements are excluded. 9 hotels with fixed-rent lease agreements are D29 Super Hotel Shinbashi/
Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR
Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42
This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

5Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. As for Sheraton Grande Tokyo Bay hotel, NOI is based on
the figure for the month which is three months prior to the target month for this performance disclosure as INV will receive
the dividend from the TMK within three months of each fiscal period end for the TMK as described above. However, inconsideration of seasonality, figures other than NOI in the table above are based on the figures for April 2019. Moreover,
the Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resorts which are the underlying assetsof the overseas TK interest acquired by INV in September 2018 are not included.
(Note 4) Based on the Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resorts, the underlying
assets of preferred equity interest held by INV as of the beginning of January 2019. As for the Cayman hotels, NOI isbased on the figure for the month which is three months prior to the target month for this performance disclosure as INV
will receive the dividend from the TMK within three months of each fiscal period end for the Cayman SPC as describedabove. However, in consideration of seasonality, figures other than NOI in the table above are based on the figures forApril 2019.
(Note 5) Based on 64 properties held as of the beginning of January 2019.
(Note 6) NOI excludes one-off insurance-related revenues and expenses, as well as expenses required to detach trust beneficiaryinterest from an integrated trust account.
(Note 7) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 8) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 9) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate and
ADR.
(Note 10) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel,
regardless of INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 11) Figures from January 2019 to April 2019 are stated.
(Note 12) Figures from January 2018 to April 2018 are stated. Figures are based on the assumption that the properties acquired
from January 1, 2018 to December 31, 2018 were held as of January 1, 2018, and figures before acquisition by INV isbased on the data obtained from third-parties including previous owners.
(Note 13) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of
total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent
per tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum of
total leasable area at the end of each month.
(Note 14) Based on the properties owned by INV as of the end of December 2018, assuming all properties were owned since thebeginning of 2018. Includes the dividends from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay
Hotel and estimated TK dividend backed by two Cayman hotels, assuming these dividends contributed throughout theJune 2018 fiscal period and the December 2018 fiscal period of INV. Actual results for the pre-acquisition period of theproperties acquired in 2018 are based on actual results provided by sellers. The TK dividend amount is calculated at theexchange rate of US$1 to ¥110, which is the exchange rate fixed by the acquisition of puts and selling calls, covering
approximately 85% of expected cash flow through December 31, 2020.
(Note 15) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue isrounded down to the nearest million yen.
(Note 16) For the details of the structure change, please see “Notice concerning Change of Investment Structure regarding
Overseas Assets” as of May 9.
(Note 17) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on May 27, 2019 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any
discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

6